Mumbai, July 8 — Shares of several Indian textile companies surged on Tuesday after the United States announced a 35 percent tariff on apparel imports from Bangladesh. This revised tariff, slightly reduced from the earlier 37 percent, has created an optimistic environment for Indian exporters who may now gain a competitive advantage in the US market.
Bangladesh, which holds a 9 percent share in US readymade garment imports, is among the key competitors affected. Vietnam, another major player with a 19 percent share, has also been hit with a 20 percent tariff. India currently has a 6 percent market share and faces a relatively lower tariff rate of about 10 percent on average, though certain textile categories attract tariffs of up to 26 percent.
Stocks of companies like Vardhman, Gokaldas Exports, Siyaram Silk Mills, and Alok Industries rallied up to 17 percent. Market analysts believe that if India successfully signs a mini-trade agreement with the US, it could benefit from even lower tariff rates, thus boosting its export share. However, industry insiders have also cautioned that uncertainties around global demand, input costs, and buyer sentiment may continue to put pressure on exporters. On the positive side, India recently signed a free trade agreement with the United Kingdom, which is expected to help diversify export destinations and reduce over-reliance on the US market.